United States Attorney's Office District of Connecticut
Press Release

SALISBURY MAN PLEADS GUILTY TO TAX EVASION

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that CHARLES H. PANKOW, age 37, formerly of Salisbury, Connecticut, pleaded guilty today to a one-count Information charging him with tax evasion in violation of Title 26, United States Code, Section 7201. PANKOW entered the plea today before United States District Judge Alfred V. Covello in Hartford.

According to documents filed in Court and statements at the court hearing, PANKOW admitted that for the tax years 1998 through 2001, he willfully evaded the payment of his taxes. From approximately 1996 through January 2002, the defendant was employed by Skip Barber Racing School, Inc. where he started as a salesman and eventually worked his way up to the position of Vice-President of Special Projects. Despite receiving wage income for the years 1998 through 2001 totaling more than $500,000, PANKOW admitted that he did not file federal individual income tax returns for those years and evaded the payment of taxes by maintaining a false Form W-4 claiming exemption from taxes, and by filing Forms 4868 (extension of time to file) for the years 1998, 1999, and 2000. Further, PANKOW falsely claimed in the Forms 4868 that he had a total tax liability of zero for those years and, therefore, owed no taxes. For the years 1998-2001, as a result of the scheme to evade and defeat taxes, PANKOW failed to file returns and report total taxable income of $591,812.00 and pay total taxes due and owing of $167,624.00.

PANKOW faces up to five years of imprisonment and a fine of approximately $250,000 when he is sentenced by Judge Covello on June 30, 2005.

The case was investigated by Special Agents of the Internal Revenue Service - Criminal Investigation and is being prosecuted by Assistant United States Attorney Nora R. Dannehy.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov